1) A firm has a production function defined as y = 40L1/10K7/10. The firm faces costs of $10 wages, and $100 rental rate of capital. Find the cost function, and average total cost, average variable cost, and marginal cost functions.
2) A firm has a production function defined as y = 8L1/4K3/4. The firm faces costs of $20 wage, $60 rental rate of capital, $2 per unit produced, and a $42 fixed cost. Find the cost function, and average total cost, average variable cost, and marginal cost functions.